A railroad company in Texas charged higher haulage rates for service between Shreveport, Louisiana and Dallas, Texas, than it did for service involving greater distances within Texas. The Interstate Commerce Commission (ICC) ordered the railroad to charge similar rates for similar distances within and between states.

Question

Did the ICC have the power to regulate intrastate rates?

Conclusion

The regulation was legitimate. Justice Hughes argued that in situations where interstate and intrastate commerce are "so related that the government of the one involves the control of the other," Congress may lawfully exercise authority. In fostering and regulating interstate commerce, Congress may take "all measures necessary or appropriate" even if that means affecting intrastate commerce as well.